Top ten biggest cryptocurrency hacks in history

Getting into crypto can be intimidating, especially to those who are unfamiliar with its technology and concepts. Although its popularity is undoubtedly growing over the years, many are still wary of investing their hard-earned money into it. In fact, the biggest barrier to widespread cryptocurrency adoption is hacking. 

Despite the secure technology promised by crypto, there were several cases of crypto hacks. They range in severity depending on the amount of money stolen. Some of the most high-profile cryptocurrency hack cases happen on crypto exchanges and platforms.

With an estimated average of $20 billion worth of crypto stolen, it is understandable that many potential investors are wary of investing in a coin or token. Discover more about the top 10 biggest crypto hacks in history here and learn how you can protect yourself from such.   

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Ronin Network

The Ronin Network suffers the biggest crypto hack in history as of writing. It happened in March 2022 when the Lazarus group targeted the network after seeing its potential worth. This is considering that they support the popular Axie Infinity blockchain gaming platform. Approximately $625 million worth of Ethereum (ETH) and USD Coin (USDC) were stolen by the North Korean state-backed hacking group. Only about $5.8 million was recovered by Binance after the incident. 

PolyNetwork

One of the biggest crypto exchange hacks was done by a lone hacker in August 2021. Poly Network, a smart contract platform that facilitates token exchanges across different blockchains, was compromised and lost $611 million. However, the hacker returned the majority of the stolen assets after the developers of the network appealed on Twitter. Within two days, an estimated amount of $300 million was returned. 

FTX

In November 2022, FTX suffered from a hack that resulted in the theft of over $600 million. Once recognised to be a powerful player in the crypto industry, the hack led to FTX filing for Chapter 11 bankruptcy. Several users reported zero balances in their wallets and were only informed of the incident through a message on Telegram and Twitter.

Binance

Binance, known to be one of the largest crypto exchanges in the market, was also not safe from hacks. In October 2022, the exchange suffered several high-profile attacks that resulted in a whopping $570 million worth of crypto stolen. The hackers exploited a cross-chain bridge called BSC Token Hub. This created extra Binance Coins (BNB) and withdrew 2 million BNB tokens. 

Coincheck

In January 2018, Japanese crypto exchange Coincheck revealed that it lost $547 million worth of NEM crypto due to storing assets in an internet-connected hot wallet. The crypto hack at the time earned the title of ‘the biggest theft in the history of the world.’ Despite this big loss, Coincheck was able to survive and continue operating. However, they were eventually bought out by the Monex Group. This incident prompted greater regulatory scrutiny in Japan. 

Mt. Gox

The infamous Mt. Gox hack took place in 2014 and remains one of the most well-known crypto heists to this day. The exchange, which handled a significant portion of Bitcoin transactions, lost approximately 850,000 BTC valued at $480 million at that time. This was not the first time Mt. Gox suffered a crypto hack as they lost $400,000 worth of Bitcoin in 2011. This incident ultimately led to the bankruptcy of Mt. Gox.

KuCoin

KuCoin, a Singapore-based crypto exchange, fell victim to a $275 million hack. In September 2020, the hackers obtained the private keys to the exchange's hot wallets and stole various crypto assets, including $127 million worth of ERC-20 tokens. Despite the hack, KuCoin managed to reimburse its users and remains one of the leading crypto exchanges.

BitMart

BitMart, a centralised exchange, suffered a hack resulting in losses of $196 million in December 2021. The security breach was initially flagged by a security analysis firm, which observed drained balances in BitMart addresses. The stolen funds were funnelled via ETH and Binance Smart Chain, with all the tokens ending up in an address labelled as the BitMart Hacker.

Nomad Bridge

August 2022 witnessed the loss of $190 million from the Nomad Token Bridge in what was described as a decentralised crowd looting. Hackers exploited a fault introduced during a routine update. This allowed them to edit previous transactions and drain various crypto assets. Fortunately, the platform recovered $36 million of the stolen funds.

Beanstalk

Last on the list was a hack that involved the exploitation of a decentralised finance (DeFi) platform called Beanstalk. The attacker used a DeFi product known as a flash loan to borrow $1 billion worth of crypto. This enabled them to take a 67% controlling stake in the project. They then approved a transfer of funds to their wallet, repaid the loan, and disappeared. The entire hack was executed in just 13 seconds.

These are just the biggest crypto hacks in history. Several more cases feature huge amounts of funds stolen within seconds. This serves as a wake-up call for the industry to prioritise robust security measures. 

While these breaches have resulted in huge money losses, they have also paved the way for improvements in the crypto sphere. As the industry continues to evolve, exchanges, platforms and users must remain vigilant in keeping their digital assets safe.

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How do crypto hacks happen

Crypto hacks occur when cybercriminals exploit vulnerabilities in crypto exchanges, wallets, or smart contracts. This allows them to gain access and steal digital assets. These breaches can happen through various methods such as phishing attacks, malware infections, or exploiting software bugs. 

Hackers can target weak passwords or use social engineering tactics and complex techniques to bypass security measures. Once inside, they can manipulate transactions, steal private keys, or syphon funds from user accounts. With this, use strong passwords, enable two-factor authentication, and only trust reliable platforms to minimise the risk of a crypto hack.

How to protect yourself from crypto hacks

Protecting yourself from crypto scams is crucial in the ever-evolving digital landscape. Here are some simple steps to safeguard your investments:

• Educate yourself: Stay informed about the latest scams and techniques used by hackers. Make sure to learn about how crypto and blockchain technology works to identify red flags and make informed decisions.
• Research and verify: Before investing in a crypto asset, thoroughly research the team behind it, the project's legitimacy, and its track record. Verify the information independently read from trusted sources.
• Secure your digital wallet: Choose a reputable wallet provider and enable additional security features, such as two-factor authentication (2FA). Also, regularly update your wallet software to benefit from the latest security patches.
• Be wary of phishing: Hackers often use phishing emails or websites to trick users into revealing their private keys or login credentials. With this, always double-check email senders' addresses and URLs and avoid clicking on suspicious links.
• Use strong passwords: Create complex passwords consisting of a combination of uppercase and lowercase letters, numbers, and special characters. Also, it is best to avoid reusing passwords across different platforms.
• Verify URLs and SSL certificates: When accessing crypto platforms or exchanges, ensure that the website's URL is correct and secured with an SSL certificate. Look for the padlock symbol in the URL bar.
• Be cautious with public Wi-Fi: Avoid accessing your crypto accounts or making transactions when connected to public Wi-Fi networks. Hackers can intercept your data on unsecured networks. This potentially compromises your accounts.
• Double-check before transacting: Before sending funds or sharing your wallet address, double-check the recipient's details to avoid sending funds to the wrong address due to typos or malicious software.
• Stay sceptical: Be wary of investment opportunities that promise exceptionally high returns or use pressure tactics. If it sounds too good to be true, it probably is. Trust your instincts and don't rush into dubious schemes.
• Seek professional advice: Consider consulting a financial advisor or experts knowledgeable in cryptocurrencies and investments before making significant investment decisions.
   

By following these measures, you can reduce the risk of falling victim to crypto scams and protect your hard-earned money in the digital world. Always stay vigilant, informed, and prioritise your security.

Should you still invest in crypto?

Investing in crypto is a personal decision that comes with pros and cons. While crypto hacks can raise security concerns, they should not be the sole factor in deciding whether to invest. It's important to remember that any investment carries some level of risk, and the crypto market has shown resilience and continued growth over time. 

By taking the necessary precautions, users can reduce the risks and benefit from the features offered by crypto. It's recommended to consult with professionals to make better investment decisions based on personal circumstances and risk tolerance.

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